HEALTHCARE PRACTICE SALES, MERGERS & ACQUISITIONS

A medical practice valuation is based on multiple quantitative and qualitative factors — not revenue alone. A comprehensive valuation analyzes:

• Financial performance - collections, overhead ratios, and net profit margins

• Patient base quality - retention rates, payer mix, and demographic profile

• Operational factors - staff stability, systems infrastructure, and technology

• Market conditions - local competition, regional demand, and growth trajectory

• Real estate - ownership vs. lease status and the terms of any existing agreement

Tower Realty Partners provides professional practice valuations that reflect real-world market conditions and buyer expectations — not just financial statements. Schedule a confidential consultation to learn what your practice is worth.

Real estate is frequently the most financially significant — and most overlooked — component of a practice transition. Key considerations include:

• Whether you own or lease the practice space, and how that affects deal structure

• Lease assignability or termination requirements if you are a tenant

• Separate disposition of owned real estate alongside or independent of the practice sale

• Coordinating real estate transaction timelines with the overall practice closing

Our team structures real estate transition strategy in full alignment with the practice sale, ensuring no detail is left unresolved at closing.

A successful practice transition requires early planning, a qualified buyer, and disciplined execution. Keep in mind the following key factors that will help you minimize disruption:

• Early preparation… ideally initiated 1–3 years prior to the target retirement or exit date

• Confidential marketing… structured to identify qualified buyers without premature disclosure to patients, staff, or referral sources

• Buyer qualification… financial and professional vetting to ensure the buyer can sustain and grow the practice

• Deal structure… transition period, patient handoff protocol, and staff retention provisions

• Real estate alignment… lease assignment or property sale coordinated with transaction timing

Don’t go at it alone - we can help you by managing every phase of the process.

Practice acquisitions offer immediate access to an established patient base, cash flow, and operational infrastructure. However, inadequate due diligence is one of the leading causes of post-acquisition failure. A successful evaluation needs to include:

• Financial records - minimum three years of verified collections and expense documentation

• Patient retention risk - likelihood of patient attrition following ownership transition

• Staff stability - retention probability of key clinical and administrative personnel

• Technology and systems - EHR compatibility and operational infrastructure

• Real estate - lease assignability and favorability of existing terms

• Regulatory compliance - outstanding licensing, billing, or compliance issues

Our team helps guide buyers through every phase of acquisition due diligence to support informed, confident decision-making.

The most frequent and costly errors in healthcare practice sales include:

• Starting the process too late, which limits buyer pool and negotiating leverage

• Accepting the highest offer without adequately vetting buyer qualifications

• Failing to address real estate considerations - lease terms, assignability, or property disposition before going to market

• Premature or uncontrolled disclosure to staff and patients

• Proceeding without experienced legal, financial, and brokerage advisors

Our team is committed to structuring every engagement to avoid these risks.